Retirement

Gern Blansten · February 17

Halifax2TheMax said:

cutz said:

SPEEDY MCCREADY said:

Anyone have thoughts on annuities? Yay or nay?

Anyone?

Would recommend against unless whatever amount you can commit can stay there for a long time and you have no interest in moving it to something more profitable if interest rates change or another potentially lucrative investment opportunity presents itself. If you’re okay parking it and forgetting about it other than the check it generates, go for it.

agreed...just avoid annuities inside a retirement account. I see some of those being recommended and it doesn't make sense to me. It's like having a suitcase inside a suitcase.

as long as the time commitment is there the returns can be great

cutz · February 17

Gern Blansten said:

Halifax2TheMax said:

cutz said:

SPEEDY MCCREADY said:

Anyone have thoughts on annuities? Yay or nay?

Anyone?

Would recommend against unless whatever amount you can commit can stay there for a long time and you have no interest in moving it to something more profitable if interest rates change or another potentially lucrative investment opportunity presents itself. If you’re okay parking it and forgetting about it other than the check it generates, go for it.

agreed...just avoid annuities inside a retirement account. I see some of those being recommended and it doesn't make sense to me. It's like having a suitcase inside a suitcase.

as long as the time commitment is there the returns can be great

My Mom has an annuity right now that she opened over 12 years ago and she's been happy with it. But, like what's been said, a long-time commitment is probably the way to go and has worked out for her.

I don't have to decide anytime soon, but I do wonder if an annuity would be best for me in the future.

Thanks for the feedback.

bootlegger10 · February 17

cincybearcat said:

nicknyr15 said:

SPEEDY MCCREADY said:

nicknyr15 said:

SPEEDY MCCREADY said:

nicknyr15 said:

SPEEDY MCCREADY said:

Retirement was basically thrown at me 7-10 years earlier than I had planned. But oh well, im alive and kicking. The last 2 years I have done plenty of research on how to make the money last. The best investments, the safest investments, the S&P, annuities, Cd's, high yield savings, etc. I'm pretty sure my wife and I will be able to live somewhat comfortable.

But I tell you, it's scary when you read about the American retirement situation as a whole. 50% of adult Americans do not have $500 in their savings account. THATS SCARY. So many people with no retirement savings, no 401k, no pension, just having to depend on their social security.

Plan ahead people!

That is all.

Agreed. With all the bullshit taught at schools it boggles my mind that basic financial classes aren’t part of a mandatory high school curriculum.

I agree with that, as far as education. It would certainly give people an idea of what needs to be done in order to make the money last. People make their own choices in life, and are content, at the time, with those choices. I have a whole group of friends who will work until they pass away, all because of their choices. They really didn't care about savings, or 401k's, or pensions. They worked construction, their own businesses, and now at 64-70 years old, they will continue working. But again, it was their choice.

Agreed. People will always make their own choices, for better or worse. But it’d be nice to give everyone a chance by educating them on the basics of Credit cards, credit score, mortgages, interest rates, 401ks, dividends and general information on the stock market as a whole.

I'm doing something at the age of 60 that most people highly frown upon. I'm pretty sure I'm selling my house and going to rent.
And before anyone tells me I'm nuts, I can go over the facts and figures, and give my argument to how I will make more money with all that money I make on the house, sitting in various accounts. More than I would if I sat in the house for another 5-10 years.
Call me crazy.
But I know how much equity I've made in 15 years, and how much I would make investing for 15 years. I also know how much I've paid in property taxes for 15 years, and interest on my mortgage for 15 years.
Equity? My ass
Hahaha

Not crazy at all. Property Tax, insurance and basic maintenance of a property might cost you more depending on where you are. It’s exhausting and expensive maintaining a property.

Yup. I wouldn’t mind downsizing to an apartment/rented condo when I retire within the next decade….bit I still have to get my wife to agree.

I have always rented. Yeah, I could have paid for a house by now with all the rent I've paid, but it doesn't bother me one bit. I know exactly what my living expenses are each year. I don't spend any time maintaining the property, lining up contractors to fix stuff, etc... No paying for a new roof, water heater, driveway, etc.... I leave on vacation and don't have to think twice about it.

I'm sure I've left some net equity on the table, and if I could have predicted the housing boom I may have considered it, but the freedom of not being tied to home feels damn good.

HughFreakingDillon · February 17

bootlegger10 said:

cincybearcat said:

nicknyr15 said:

SPEEDY MCCREADY said:

nicknyr15 said:

SPEEDY MCCREADY said:

nicknyr15 said:

SPEEDY MCCREADY said:

Retirement was basically thrown at me 7-10 years earlier than I had planned. But oh well, im alive and kicking. The last 2 years I have done plenty of research on how to make the money last. The best investments, the safest investments, the S&P, annuities, Cd's, high yield savings, etc. I'm pretty sure my wife and I will be able to live somewhat comfortable.

But I tell you, it's scary when you read about the American retirement situation as a whole. 50% of adult Americans do not have $500 in their savings account. THATS SCARY. So many people with no retirement savings, no 401k, no pension, just having to depend on their social security.

Plan ahead people!

That is all.

Agreed. With all the bullshit taught at schools it boggles my mind that basic financial classes aren’t part of a mandatory high school curriculum.

I agree with that, as far as education. It would certainly give people an idea of what needs to be done in order to make the money last. People make their own choices in life, and are content, at the time, with those choices. I have a whole group of friends who will work until they pass away, all because of their choices. They really didn't care about savings, or 401k's, or pensions. They worked construction, their own businesses, and now at 64-70 years old, they will continue working. But again, it was their choice.

Agreed. People will always make their own choices, for better or worse. But it’d be nice to give everyone a chance by educating them on the basics of Credit cards, credit score, mortgages, interest rates, 401ks, dividends and general information on the stock market as a whole.

I'm doing something at the age of 60 that most people highly frown upon. I'm pretty sure I'm selling my house and going to rent.
And before anyone tells me I'm nuts, I can go over the facts and figures, and give my argument to how I will make more money with all that money I make on the house, sitting in various accounts. More than I would if I sat in the house for another 5-10 years.
Call me crazy.
But I know how much equity I've made in 15 years, and how much I would make investing for 15 years. I also know how much I've paid in property taxes for 15 years, and interest on my mortgage for 15 years.
Equity? My ass
Hahaha

Not crazy at all. Property Tax, insurance and basic maintenance of a property might cost you more depending on where you are. It’s exhausting and expensive maintaining a property.

Yup. I wouldn’t mind downsizing to an apartment/rented condo when I retire within the next decade….bit I still have to get my wife to agree.

I have always rented. Yeah, I could have paid for a house by now with all the rent I've paid, but it doesn't bother me one bit. I know exactly what my living expenses are each year. I don't spend any time maintaining the property, lining up contractors to fix stuff, etc... No paying for a new roof, water heater, driveway, etc.... I leave on vacation and don't have to think twice about it.

I'm sure I've left some net equity on the table, and if I could have predicted the housing boom I may have considered it, but the freedom of not being tied to home feels damn good.

As a non-handy guy with not a ton of spare change, I think if we didn’t have kids, I would have wanted to stay in an apartment. So much easier, so much less maintenance.

No “who’s gonna water the flowers while we’re gone?” and all that shit.

Get_Right · February 18

It is not just the equity you leave on the table. It is the mortgage interest tax deduction during the first ten years that puts more money in your pocket. Enough to buy cars and fund accounts for the kids and retirement. Then you sell it and have more liquidity. But if you are saving enough then it may be a wash. It's all in the numbers. Buying was actually cheaper than renting for my wife and I. We have a 2,000 sq. ft. condo 35 miles north of NYC. Very little maintenance and reasonable HOA fees. When we sell we will have more than enough to fund retirement. And we do not have any flowers LOL, just a few plants that seem to survive when we go away.

Poncier · February 18

Get_Right said:

It is not just the equity you leave on the table. It is the mortgage interest tax deduction during the first ten years that puts more money in your pocket.

That deduction was kind of rendered moot for average folks when they upped the deduction amounts in 2017, I think it was. Made itemizing not necessary for a lot of people.

Get_Right · February 18

Poncier said:

Get_Right said:

It is not just the equity you leave on the table. It is the mortgage interest tax deduction during the first ten years that puts more money in your pocket.

That deduction was kind of rendered moot for average folks when they upped the deduction amounts in 2017, I think it was. Made itemizing not necessary for a lot of people.

Yes but it still made sense for us. Always itemize. If you make less than 1m, it is most likely they will not come after you.

Gern Blansten · February 18

Get_Right said:

Poncier said:

Get_Right said:

It is not just the equity you leave on the table. It is the mortgage interest tax deduction during the first ten years that puts more money in your pocket.

That deduction was kind of rendered moot for average folks when they upped the deduction amounts in 2017, I think it was. Made itemizing not necessary for a lot of people.

Yes but it still made sense for us. Always itemize. If you make less than 1m, it is most likely they will not come after you.

Mortgage interest is reported to the IRS so they won't come after you for itemizing unless you deduct more than reported.

Just remember that only $750K in debt is allowable. So right now there is a limit on mortgage interest and a cap on state tax (at $10K).

Get_Right · February 18

Gern Blansten said:

Get_Right said:

Poncier said:

Get_Right said:

It is not just the equity you leave on the table. It is the mortgage interest tax deduction during the first ten years that puts more money in your pocket.

That deduction was kind of rendered moot for average folks when they upped the deduction amounts in 2017, I think it was. Made itemizing not necessary for a lot of people.

Yes but it still made sense for us. Always itemize. If you make less than 1m, it is most likely they will not come after you.

Mortgage interest is reported to the IRS so they won't come after you for itemizing unless you deduct more than reported.

Just remember that only $750K in debt is allowable. So right now there is a limit on mortgage interest and a cap on state tax (at $10K).

It worked for us, we got large refunds for the first ten years. But I guess that was 2007-2017. Our mortgage was under 750K. We always itemize as we have many expenses that are deductible, such as the child tax credit and unreimbursed medical expenses.

Zod · February 18

I wish mortgage interest was tax deductible in Canada. I suppose our upside on our homes, is principle residence's are completely exempt from Capital Gains.

Gern Blansten · February 18

Get_Right said:

Gern Blansten said:

Get_Right said:

Poncier said:

Get_Right said:

It is not just the equity you leave on the table. It is the mortgage interest tax deduction during the first ten years that puts more money in your pocket.

That deduction was kind of rendered moot for average folks when they upped the deduction amounts in 2017, I think it was. Made itemizing not necessary for a lot of people.

Yes but it still made sense for us. Always itemize. If you make less than 1m, it is most likely they will not come after you.

Mortgage interest is reported to the IRS so they won't come after you for itemizing unless you deduct more than reported.

Just remember that only $750K in debt is allowable. So right now there is a limit on mortgage interest and a cap on state tax (at $10K).

It worked for us, we got large refunds for the first ten years. But I guess that was 2007-2017. Our mortgage was under 750K. We always itemize as we have many expenses that are deductible, such as the child tax credit and unreimbursed medical expenses.

I hope you aren't deducting your child tax credit as an itemized deduction lol

Gern Blansten · February 18

Zod said:

I wish mortgage interest was tax deductible in Canada. I suppose our upside on our homes, is principle residence's are completely exempt from Capital Gains.

Ours are exempt on gains up to $500K joint, $250K single

It's odd that there is a deduction for mortgage interest and not rent on the federal side. I remember being able to deduct personal interest as well. It's certainly nice not having to chase down interest paid on autos, credit cards, etc., anymore.

Get_Right · February 18

Gern Blansten said:

Get_Right said:

Gern Blansten said:

Get_Right said:

Poncier said:

Get_Right said:

It is not just the equity you leave on the table. It is the mortgage interest tax deduction during the first ten years that puts more money in your pocket.

That deduction was kind of rendered moot for average folks when they upped the deduction amounts in 2017, I think it was. Made itemizing not necessary for a lot of people.

Yes but it still made sense for us. Always itemize. If you make less than 1m, it is most likely they will not come after you.

Mortgage interest is reported to the IRS so they won't come after you for itemizing unless you deduct more than reported.

Just remember that only $750K in debt is allowable. So right now there is a limit on mortgage interest and a cap on state tax (at $10K).

It worked for us, we got large refunds for the first ten years. But I guess that was 2007-2017. Our mortgage was under 750K. We always itemize as we have many expenses that are deductible, such as the child tax credit and unreimbursed medical expenses.

I hope you aren't deducting your child tax credit as an itemized deduction lol

It is on there somewhere. We file as married. My accountant handles it. I did get a letter in 2021 from the IRS asking for proof of the child care expenses. I sent them a letter and 38 pages of receipts. Matter closed.

Gern Blansten · February 18

Get_Right said:

Gern Blansten said:

Get_Right said:

Gern Blansten said:

Get_Right said:

Poncier said:

Get_Right said:

It is not just the equity you leave on the table. It is the mortgage interest tax deduction during the first ten years that puts more money in your pocket.

That deduction was kind of rendered moot for average folks when they upped the deduction amounts in 2017, I think it was. Made itemizing not necessary for a lot of people.

Yes but it still made sense for us. Always itemize. If you make less than 1m, it is most likely they will not come after you.

Mortgage interest is reported to the IRS so they won't come after you for itemizing unless you deduct more than reported.

Just remember that only $750K in debt is allowable. So right now there is a limit on mortgage interest and a cap on state tax (at $10K).

It worked for us, we got large refunds for the first ten years. But I guess that was 2007-2017. Our mortgage was under 750K. We always itemize as we have many expenses that are deductible, such as the child tax credit and unreimbursed medical expenses.

I hope you aren't deducting your child tax credit as an itemized deduction lol

It is on there somewhere. We file as married. My accountant handles it. I did get a letter in 2021 from the IRS asking for proof of the child care expenses. I sent them a letter and 38 pages of receipts. Matter closed.

Yeah it's on your return but it's not an itemized deduction. That was hilarious to accounting nerds.

I had someone bring me their return a few years ago that was getting IRS notices. The guys wife was basically plugging charitable contributions to get the refund she wanted. Their income was like $150K and she was listing charitable at $60K. Total fucking red flag.

The IRS accepted the original return and then a year later sent a letter disallowing the deduction and billing them for the tax difference. By then she had done the same thing on the next return. Crazy shit and I bet it happens a lot.

Get_Right · February 18

Gern Blansten said:

Get_Right said:

Gern Blansten said:

Get_Right said:

Gern Blansten said:

Get_Right said:

Poncier said:

Get_Right said:

It is not just the equity you leave on the table. It is the mortgage interest tax deduction during the first ten years that puts more money in your pocket.

That deduction was kind of rendered moot for average folks when they upped the deduction amounts in 2017, I think it was. Made itemizing not necessary for a lot of people.

Yes but it still made sense for us. Always itemize. If you make less than 1m, it is most likely they will not come after you.

Mortgage interest is reported to the IRS so they won't come after you for itemizing unless you deduct more than reported.

Just remember that only $750K in debt is allowable. So right now there is a limit on mortgage interest and a cap on state tax (at $10K).

It worked for us, we got large refunds for the first ten years. But I guess that was 2007-2017. Our mortgage was under 750K. We always itemize as we have many expenses that are deductible, such as the child tax credit and unreimbursed medical expenses.

I hope you aren't deducting your child tax credit as an itemized deduction lol

It is on there somewhere. We file as married. My accountant handles it. I did get a letter in 2021 from the IRS asking for proof of the child care expenses. I sent them a letter and 38 pages of receipts. Matter closed.

Yeah it's on your return but it's not an itemized deduction. That was hilarious to accounting nerds.

I had someone bring me their return a few years ago that was getting IRS notices. The guys wife was basically plugging charitable contributions to get the refund she wanted. Their income was like $150K and she was listing charitable at $60K. Total fucking red flag.

The IRS accepted the original return and then a year later sent a letter disallowing the deduction and billing them for the tax difference. By then she had done the same thing on the next return. Crazy shit and I bet it happens a lot.

Yeah we do not get too aggressive with our deductions but we also know they really do not care about us. We are small potatoes.

MayDay10 · February 18

nicknyr15 said:

SPEEDY MCCREADY said:

nicknyr15 said:

SPEEDY MCCREADY said:

Retirement was basically thrown at me 7-10 years earlier than I had planned. But oh well, im alive and kicking. The last 2 years I have done plenty of research on how to make the money last. The best investments, the safest investments, the S&P, annuities, Cd's, high yield savings, etc. I'm pretty sure my wife and I will be able to live somewhat comfortable.

But I tell you, it's scary when you read about the American retirement situation as a whole. 50% of adult Americans do not have $500 in their savings account. THATS SCARY. So many people with no retirement savings, no 401k, no pension, just having to depend on their social security.

Plan ahead people!

That is all.

Agreed. With all the bullshit taught at schools it boggles my mind that basic financial classes aren’t part of a mandatory high school curriculum.

I agree with that, as far as education. It would certainly give people an idea of what needs to be done in order to make the money last. People make their own choices in life, and are content, at the time, with those choices. I have a whole group of friends who will work until they pass away, all because of their choices. They really didn't care about savings, or 401k's, or pensions. They worked construction, their own businesses, and now at 64-70 years old, they will continue working. But again, it was their choice.

Agreed. People will always make their own choices, for better or worse. But it’d be nice to give everyone a chance by educating them on the basics of Credit cards, credit score, mortgages, interest rates, 401ks, dividends and general information on the stock market as a whole.

To me, this is crazy. I grew up in a lower-middle class family. My father was a hard-no with credit. Very austere. But I didn't learn anything. I remember getting in trouble for signing up for Columbia House and BMG but never told why.

School taught me nothing.

Through college and my early-mid 20s, I had to put my hand on a lot of burning stoves to figure out how damaging credit card debt is, and how compounding interest can work and all that. Luckily in my late 20s I read a couple beginners books on personal finance and have done pretty well since. I am clear with my 11 year old son, and have introduced him to concepts like credit card debt, savings, and compounding interest.

Its crazy schools dont teach this. Its like the biggest pillar in our society.

Get_Right · February 18

Personal Finance is now offered at most colleges but 100% agree it needs more emphasis.

nicknyr15 · February 18

MayDay10 said:

nicknyr15 said:

SPEEDY MCCREADY said:

nicknyr15 said:

SPEEDY MCCREADY said:

Retirement was basically thrown at me 7-10 years earlier than I had planned. But oh well, im alive and kicking. The last 2 years I have done plenty of research on how to make the money last. The best investments, the safest investments, the S&P, annuities, Cd's, high yield savings, etc. I'm pretty sure my wife and I will be able to live somewhat comfortable.

But I tell you, it's scary when you read about the American retirement situation as a whole. 50% of adult Americans do not have $500 in their savings account. THATS SCARY. So many people with no retirement savings, no 401k, no pension, just having to depend on their social security.

Plan ahead people!

That is all.

Agreed. With all the bullshit taught at schools it boggles my mind that basic financial classes aren’t part of a mandatory high school curriculum.

I agree with that, as far as education. It would certainly give people an idea of what needs to be done in order to make the money last. People make their own choices in life, and are content, at the time, with those choices. I have a whole group of friends who will work until they pass away, all because of their choices. They really didn't care about savings, or 401k's, or pensions. They worked construction, their own businesses, and now at 64-70 years old, they will continue working. But again, it was their choice.

Agreed. People will always make their own choices, for better or worse. But it’d be nice to give everyone a chance by educating them on the basics of Credit cards, credit score, mortgages, interest rates, 401ks, dividends and general information on the stock market as a whole.

To me, this is crazy. I grew up in a lower-middle class family. My father was a hard-no with credit. Very austere. But I didn't learn anything. I remember getting in trouble for signing up for Columbia House and BMG but never told why.

School taught me nothing.

Through college and my early-mid 20s, I had to put my hand on a lot of burning stoves to figure out how damaging credit card debt is, and how compounding interest can work and all that. Luckily in my late 20s I read a couple beginners books on personal finance and have done pretty well since. I am clear with my 11 year old son, and have introduced him to concepts like credit card debt, savings, and compounding interest.

Its crazy schools dont teach this. Its like the biggest pillar in our society.

It makes no sense! But I guess these lenders benefit from irresponsible and uninformed people. It’s sad.

nicknyr15 · February 18

Get_Right said:

Personal Finance is now offered at most colleges but 100% agree it needs more emphasis.

Shouldn’t be offered in college. It should be part of a mandatory curriculum in high school. Just my opinion.

cincybearcat · February 18

I got very confused cause I was on a college basketball forum and they were talking about the need for personal finance classes for NIL athletes and everyone….then it’s a topic on the Pearl Jam forum….

same argument. Offered vs mandatory

Retirement

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